What does accounting software do?
Accounting software is designed to record and track financial activity such as entries, invoices, expenses, revenue, accounts and reports.
For some companies, that may be all they need at a particular stage.
What does ERP add?
- ✓ Connect sales with accounting.
- ✓ Connect purchasing with suppliers and accounts.
- ✓ Connect inventory movement with buying and selling.
- ✓ Manage employees and administrative operations.
- ✓ Manage projects or manufacturing where required.
- ✓ Bring operational and financial data into one platform.
A simple example
With standalone accounting software, a sales invoice may be recorded financially while inventory is managed elsewhere.
With ERP, the same transaction can connect the customer, inventory, accounts and reporting.
Which system does your business need?
If your requirement is purely financial, accounting software may be enough. If you need sales, inventory, purchasing, people and operations to work together, ERP is generally the broader solution.